Which of the following statements is true?
A)The normal balance is always on the side of the T account that is increasing.
B)The normal balance is always on the side of the T account that is decreasing.
C)The normal balance is always on the debit side of the T account.
D)The normal balance is always on the credit side of the T account.

Question

Quizplus · Accepted Answer

The normal balance of an account refers to the side (debit or credit) where increases to the account are recorded. This means for assets and expenses, the normal balance is on the debit side, and for liabilities, equity, and revenue, it's on the credit side. Therefore, the statement that the normal balance is always on the side of the T account that is increasing is correct.

Which of the Following Statements Is True